Wrong use of tax breaks - Again!

[shortstuff]

The Mini dealer that has just received $69,000 in sales and mortgage recording tax exemptions is a waste of taxpayers dollars! I was very disappointed that the Clarence IDA gave them this break. I feel that the IDA's have come relatively a long way from reorganizing their priorties when handing out these incentives.

These give aways need to stop and the Clarence IDA just took two steps backwards in creating a balance when the IDA's were reforming their priorities. Listen, with the calm of this issue does not mean that the IDA's can do a bait and switch and pull the rug out from under the taxpayers.

Clarence IDA, bad move and this is costly especially knowing this project was going to happen anyways and only employing 11 people. Bad decision.

[WNYresident]

How much of a cut does the Clarence IDA get from that deal?

[gorja]

The Mini dealer that has just received $69,000 in sales and mortgage recording tax exemptions is a waste of taxpayers dollars! I was very disappointed that the Clarence IDA gave them this break. I feel that the IDA's have come relatively a long way from reorganizing their priorties when handing out these incentives.

These give aways need to stop and the Clarence IDA just took two steps backwards in creating a balance when the IDA's were reforming their priorities. Listen, with the calm of this issue does not mean that the IDA's can do a bait and switch and pull the rug out from under the taxpayers.

Clarence IDA, bad move and this is costly especially knowing this project was going to happen anyways and only employing 11 people. Bad decision.

I'm of a different opinion on this one. The $69,000 in tax breaks equates to about $6,273 per job created. This expansion is projected to bring an additional $650,000 in sales tax revenue than the present yearly sales tax revenue. That is nearly 9.5 times the value of the tax break. Their property tax bill will NOT include an IDA exemption

[shortstuff]

gorja, that's cool, however I do disagree. Nathan Neill (councel) who was let go here in Lancaster due to the re-org, stated "sales tax exemptions would be worth about $50,000." Also stated that no property tax breaks were awarded, and the sales tax break applies only to the cost of construction materials for the 10,000 square foot building, not to dealership related equipment that will be installed.

A cost analysis should done, are these mini coupers a hot item? They began the expansion project irregardless, was it crucial they get the tax breaks?

Hartzell states it is the only Mini dealer in Western New York. Come on, now we are going to start using the "only one in WNY" excuse? I'm sorry this is a poor representation of Industrial Development if I ever seen one...what's next Land Rover is going to ask for incentives, they are the only one in WNY. Let's be smart about this guys!

[gorja]

gorja, that's cool, however I do disagree. Nathan Neill (councel) who was let go here in Lancaster due to the re-org, stated "sales tax exemptions would be worth about $50,000." Also stated that no property tax breaks were awarded, and the sales tax break applies only to the cost of construction materials for the 10,000 square foot building, not to dealership related equipment that will be installed.

A cost analysis should done, are these mini coupers a hot item? They began the expansion project irregardless, was it crucial they get the tax breaks?

Hartzell states it is the only Mini dealer in Western New York. Come on, now we are going to start using the "only one in WNY" excuse? I'm sorry this is a poor representation of Industrial Development if I ever seen one...what's next Land Rover is going to ask for incentives, they are the only one in WNY. Let's be smart about this guys!

You're right, shortstuff about the sales tax exemption. the other $19,000 is a mortgage tax exemption.
Mr Leone stated at the November 15, CIDA meeting that an Impact Analysis is done on most major projects.
They won't be paying full property taxes at the outset due to being a retail establishment and eligible for 485-b
exemption, not due to the IDA but will be paying more than the $8000 in property taxes now being paid on the property.
Another words, the Town of Clarence will be receiving more income in sales tax revenue and property taxes than
they would be receiving without the expansion.

[Lee Chowaniec]

Lord Amherst renovation gets tax breaks amid neighborhood concerns

http://www.buffalonews.com/apps/pbcs...121229825/1003

I have openly stated that I believe in IDAS when granted for the right reasons. However, the above is another example of corporate welfare on the taxpayer dime, spun as being something else by forecasting what could be had in the future if all goes as they say it will.

Speaking of corporate welfare, the Bills made out alrighthaving to pay only $35 million for a $120 million stadium renovation while New York State and Erie County taxpayers are on the hook for $95 million and have not been in the playoffs for the last 10 years. That 7 year option $29 million penalty for moving the team out of Buffalo will be real scary to others hoping to move the Bills out of Buffalo.

[WNYresident]

I'm of a different opinion on this one. The $69,000 in tax breaks equates to about $6,273 per job created. This expansion is projected to bring an additional $650,000 in sales tax revenue than the present yearly sales tax revenue. That is nearly 9.5 times the value of the tax break. Their property tax bill will NOT include an IDA exemption

How will it generate $650,000 more in sales tax? What that dealer gains is another dealers loss. The loss of sales from another local dealer could be a loss of 11 jobs and this dealer gains 11 jobs... Your net gain is 0.

So what is the Clarence IDA's cut on the deal?

[gorja]

How will it generate $650,000 more in sales tax? What that dealer gains is another dealers loss. The loss of sales from another local dealer could be a loss of 11 jobs and this dealer gains 11 jobs... Your net gain is 0.

So what is the Clarence IDA's cut on the deal?

The other mini cooper dealer competition is in Rochester. That's who they are attempting to get the business back from.
They used to sell cars to buyers as far away as Albany until the Rochester dealer opened. They want to have more cars available for sale

[Lee Chowaniec]

http://www.buffalonews.com/Article/2...GION/121229732

Well said Mr. Esmonde, well said.

This together with the three Clarence and Amherst IDAS for retail, a car dealership and a restaurant ar great examples of corporate welfare on the taxpayer dime. And they are all being spun as being great projects that will benefit the community down the road.

[dtwarren]

The other mini cooper dealer competition is in Rochester. That's who they are attempting to get the business back from.
They used to sell cars to buyers as far away as Albany until the Rochester dealer opened. They want to have more cars available for sale

On sales of motor vehicles generally, sales tax is collected at the combined rate in effect in the local jurisdiction where the customer is a resident, regardless of where the vehicle is delivered to the customer. So the operative question is how will this dealership increase mini-coup sales to Erie County residents, not how many taxable sales will it make to customers. ( See: http://www.tax.ny.gov/pdf/publications/sales/pub838.pdf ).

As far as the other services such as maintenace, repair, service, etc. it woulod be taxed and remitted to NYS and Erie County at the point of delivery rather that the customer's residence.

[gorja]

On sales of motor vehicles generally, sales tax is collected at the combined rate in effect in the local jurisdiction where the customer is a resident, regardless of where the vehicle is delivered to the customer. So the operative question is how will this dealership increase mini-coup sales to Erie County residents, not how many taxable sales will it make to customers. ( See: http://www.tax.ny.gov/pdf/publications/sales/pub838.pdf ).

As far as the other services such as maintenace, repair, service, etc. it woulod be taxed and remitted to NYS and Erie County at the point of delivery rather that the customer's residence.

Thank you for pointing that out, mr Warren